A political scandal is brewing in the Pacific nation of Tonga where more than $NZ50 million from the sale of Tongan citizenships has been misplaced.
The Tongan government made $75.5m between 1983 and 1991 from the sale of more than 5000 citizenships and special passports.
The money was desposited in an account,
the Tonga Trust Fund, with the San Francisco branch of the Bank of America by Hong Kong businessman George Chen, who was appointed by the royal family to handle the sales.
At some time later, American businessman Jesse Bogdonoff won approval to invest the money on behalf of the royal family. He claimed the fund grew by $NZ29.5 million while under his control.
But it appears now that about $50.45 million of the money in the trust account is missing.
Most of the citizenships were brought by Asians, particularly Hong Kong Chinese concerned about the handover to China.
The money was placed offshore because the King said he was worried the money would only be spent on roads.
According to a report from the news agency Agence France Press (AFP), some of the money is thought to have gone into a dotcom company set up by Crown Prince Tupuoto'a.
Tongan MP Teisina Fuko this week tabled impeachment motions against former finance minister Siosiua Utoikamanu and justice minister, Tevita Tupou who have both been implicated in the scandal.
Mr Fuko told the AFP it looked like the money was all gone.
"Why was the $US20 million taken out from a secured investment, from the Bank of America, and reinvested into a company with questionable background?
"It looks like we are the laughing stock of the world again," he said.
The Tongan parliament has set up a committee to investigate.
